Zedus furnitures issued a 10 year P1,910,000 FV, 6% bonds at par. Each of the P1,000 bond convertible in to 15 number of common shares. Net income-P612,220. Tax=20%. It had 98,000 shares of common outstanding throughout the year and none of bonds were converted in the year. Calculate diluted EPS Also assume the same as above except P960,000 of 6% convertible preferred stock was issued instead of the bonds. Each P100 preferred share is convertible in to 5 shares of common stock. Find diluted EPS.

Zedus furnitures issued a 10 year P1,910,000 FV, 6% bonds at par. Each of the P1,000 bond convertible in to 15 number of common shares. Net income-P612,220. Tax=20%. It had 98,000 shares of common outstanding throughout the year and none of bonds were converted in the year. Calculate diluted EPS Also assume the same as above except P960,000 of 6% convertible preferred stock was issued instead of the bonds. Each P100 preferred share is convertible in to 5 shares of common stock. Find diluted EPS.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...

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OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________. A. more than 6% B. less than 6% C. equal to 6% D. cannot be determined from the information given.
Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for $103,000. From this information, we know that the market rate of interest was ________. A. more than 7% B. less than 7% C. equal to 7% D. equal to 1.3%
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Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
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Ken company which was dealing with high level computer chips issued a 10 year P1,810,000 FV, 6% bonds at par. Each of the P1,000 bond convertible in to 15 number of common shares. Net income-P512,220. Tax=20%. It had 98,000 shares of common outstanding throughout the year and none of bonds were converted in the year. Calculate diluted EPS
E On January 1, 20x1, Kindness Co. issued 3-year, 10%, P2.000,000 convertible bonds for P2,200,000. Principal is due at maturity but interest is payable every year-end. The bonds are convertible into 6,000 ordinary shares with par value per share of P200. On issuance date, the prevailing market rate of interest for sinmilar debt without a conversion feature was 12%. On December 31, 20x2, Kindness Co. retired all the bonds for P2,000,000. On retirement date, the current rate for similar debt instrument without a conversion feature was 11%. Requirement: Provide all the entries in 20x1 and 20x2.
KKK Company reported the following at year-end: 10% Bonds payable 1,000,000 Ordinary share capital, P100 par, 50,000 shares 5,000,000 Net income 1,730,000 The bonds are convertible into ordinary shares in the ratio of 10 ordinary shares for each P1,000 bond. The income tax rate is 30%. Questions: 1. Compute for the basic earnings per share. 2. Compute for the diluted earnings per share.
5. On January 1, 20x1, Kindness Co. issued 3-year, 10%, P2,000,000 convertible bonds for P2,200,000. Principal is due at maturity but interest is payable every year-end. The bonds are convertible into 6,000 ordinary shares with par value per share of P200. On issuance date, the prevailing market rate of interest for similar debt without a conversion feature was 12%. On December 31, 20x2, Kindness Co. retired all the bonds for P2,000,000. On retirement date, the current rate for similar debt instrument without a conversion feature was 11%. Requirement: Provide all the entries in 20x1 and 20x2.